45-HR. CA REAL ESTATE PRACTICE COURSE » Summer 2021 » Section 10 Unit 2 Exam

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Question #1
Which type of investor markets to renters rather than buyers?
A.   Buy-and-hold
B.   Deep pocket
C.   Wholesale
D.   Fix-and-flip
Question #2
What advantage does the 1031 tax-deferred exchange offer?
A.   It provides a tax shelter for non-real estate investments.
B.   It offsets capital gains for homeowners who have lived in the home for at least two years.
C.   It allows investors to avoid ever paying taxes from gains realized on their investments.
D.   It allows investors to defer capital gains taxes when selling a property, provided they buy another property.
Question #3
To whom would a 1031 tax exchange usually appeal?
A.   Traditional homebuyers
B.   Retailers
C.   Wholesalers
D.   Investors
Question #4
You've just met a potential new investor client. You ask about investment goals, partnerships, and service requirements. Why?
A.   To qualify the investor
B.   To demonstrate your expertise
C.   To build rapport
D.   To let the investor know you want business
Question #5
More than half of foreign buyers come from which five countries?
A.   Pakistan, Belgium, Cambodia, Poland, and Korea
B.   China, Canada, Mexico, India, and the United Kingdom
C.   France, Germany, Spain, Switzerland, and Sweden
D.   Russia, Japan, South Africa, Iran, and Syria
Question #6
Your client is making an offer on a property, but the offer is substantially lower than asking price. The seller is a family with four small children. What might you do to help increase the chances of having the low offer accepted?
A.   Compliment the children a lot to the parents.
B.   Offer to babysit so the parents can take an evening off.
C.   Allow the family to remain in the home rent-free for a month.
D.   Offer to act as a buyer agent for the family.
Question #7
Rob purchased a property five years ago for $200,000. He put down $50,000 and financed $150,000. Today, the property is valued at $250,000. What is this an example of?
A.   Equity build up
B.   Depreciation
C.   Rate of return
D.   Pyramiding
Question #8
How should you tailor your marketing strategies for investment properties?
A.   By property type and investment type
B.   By visibility of property
C.   On commission to be realized
D.   On sales price

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